SUNOCO, INC.

Sunoco has screened its operations, shed nonperforming ones, and buffed the others in hopes that the sun will shine on future profits. It has 5,400 miles of oil and 2,500 miles of refined products pipelines and 40 product terminals. It markets its Sunoco gasoline through more than 4,900 retail outlets (including Ultra Service Centers and APlus convenience stores) in 23 states. Sunoco produces lubricants and mines coal for coke processing. It also operates two refineries, with a total processing capacity of 505,000 barrels of crude oil a day, although it is exiting this business. In 2012 the company was acquired by Energy Transfer Partners.

Change of Company Type

In 2012 Sunoco was acquired by Energy Transfer Partners for $5.4 billion, establishing one of the country's largest diversified energy providers.

Operations

Sunoco's logistics segment operates and manages refined product and crude oil pipelines and terminals; it also acquires crude oil and refined products through more than 40 terminals. The company's retail marketing segment engages in the retail sale of gasoline and middle distillates, operating in convenience stores under the APlus brand name.

Some of Sunoco's pipeline, terminal, and storage assets are held through publicly traded Sunoco Logistics Partners, which is 32% controlled by Sunoco unit Sunoco Partners.

In 2011 Sunoco exited its chemicals business and announced plans to exit the refining business. The company's decision to sell or idle its refining operations was part of a larger strategic review aimed at jettisoning high-cost units while maximizing the potential of its retail and logistics business, a review which led to the Energy Transfer Partners acquisition in 2012.

The company is constantly streamling its operating structure to focus on its core segments. In 2011 it sold its 170,000 barrels-per-day Toledo, Ohio, refinery to PBF Holding for $400 million. It also sold a Philadelphia chemical plant to Honeywell International for $85 million as part of its strategy of selling noncore assets, and formed a joint venture with The Carlyle Group in 2012 to run its historic 300,000 barrels-per-day Philadelphia refinery.

In 2011 Sunoco exited its chemicals business by selling off the last of its standalone chemical complexes, a phenol manufacturing plant, to Haverhill Chemicals (an affiliate of private equity firm Goradia Capital) for $106.5 million. It also spun off its coke business as SunCoke Energy, for about $186 million. Suncor retained 80% of the unit following the IPO but divested this stock in early 2012.